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a3. Sales Process

The sales process begins with the creation of a sales order.   A sales order is not a final sale to the customer and can be saved, modified or deleted.   Once a service is provided to the customer or ownership of products are transferred to the customer, the invoice can then be created 

Below are the accounting transactions that occur when processing a sales invoice. 

General Ledger transaction to show that the invoice was created against a customer account. 
CR: Sales                                                 
CR: Sales tax payable                                   
DR: Client Receivables account                

General Ledger transaction to pay the invoice.  Cash/Card transactions post to POS account
CR: Client Receivables account                 
DR: Bank account (POS Account if processed via the sales app)                            

General Ledger transaction to transfer the inventory from the balance sheet to the income statement. 
CR: Finished Goods
DR: Cost of Sales